Wednesday, December 03, 2008

>Top 20 cash rich companies

In the current scenario, where every event is marked with
uncertainties and good companies are available at never-seenbefore
valuations, we decided to conduct an analysis based on
cash balances with the companies.

In this approach, we have undertaken the following steps –
1. We chose BSE 500 (excluding banking stocks) as our
universe, thereby covering ~84% of the BSE market

2. We ranked the companies on the basis of Net Cash Balance
as a percentage of Market Capitalization.

3. In step 2, we found 147 companies to be net cash positive as
per the last audited results. The remaining companies were
excluded from further analysis.

4. Thereafter, we removed the companies with a market
capitalization of less than Rs 2,000 crore. After this, we
were left with 20 companies.

5. The top 8 (on the basis of ranks in step 2) of these 20
companies have been presented in this report, alongwith
our views.

The Top 8

• Hindustan Zinc
• Bharat Electronics
• Neyveli Lignite Corporation
• Satyam Computers
• Thermax
• Maruti Suzuki

Read full report here Top 20 cash rich companies



Digs said...

Good work dude, now tell me ur frank view, when to buy these cash rich cos, any timing? From ur charts (Technical or fundamental, which ever is good) when shud one enter... cos either today or a couple of years later, such cos are gonna reward.. so its only one way entry.. no need for SL's n all.. just frank advice for entry points, especially supports.. so one can buy on for precise rates.. God bless.

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